9 Things You Must Know About Client Account

If you are, or are willing to become, an immigration professional in Canada, you must follow certain regulations. This article provides insights on the Client Account Regulation which, as an immigration consultant, you must follow.

Registration with ICCRC

If you wish to become an immigration professional in Canada, or to provide immigration services in Canada from abroad, you must be registered with the Immigration Consultants of Canada Regulatory Council (ICCRC). Once you are a member, you are known as a Regulated Canadian Immigration Consultant (RCIC).

Client Account Regulation

Every immigration professional who is a member of ICCRC must follow the Client Account Regulation 2015-2. Consequently, you shall maintain an account designated as a Client Account in the name of the Member, or in the name of the Entity under which the Member conducts business, or in the name of the firm under which the Member conducts business, or in the name of the firm of which the Member is a partner, or in the name of the partners of the firm in which the Member is a partner.

Purpose of a Client Account

A Client Account is a prerequisite to receiving any advance from your client for services to be performed or expenses to be incurred on behalf of your client. You must open a Client Account before you receive money from a client to be held on their behalf for:

1. future unbilled services;
2. overpayment of billed services;
3. government processing fees; or
4. any other type of disbursement.

Exemption from a Client Account

If you agree not to hold money on behalf of your client, you must submit an annual declaration to ICCRC to claim exemption from the requirement of opening a Client Account.

What is a Client Account?

As defined in the Client Account Regulation, a Client Account means a savings or chequing account opened by a Member at a Financial Institution, in which the Member holds funds received from or on behalf of one or more Clients, and which is designated in the Member’s records as a Client Account.

Deposits in a Client Account

Any money you receive to be held on behalf of your client for future unbilled services, for overpayment of billed services, for all government processing fees, and for all other disbursements shall be promptly deposited in your Client Account, in any case not later than 14 days from the receipt of such money. You shall not hold or deposit any other funds in your Client Account, regardless of whether they relate to your client, unless they are immigration services related.

Models for use of a Client Account

ICCRC recognises two models for using your Client Account. You may choose either one, but you must apply your choice consistently for the entire audit year. The models are:

1. Model 1 — all monies received from clients must be deposited into the Client Account.
2. Model 2 — members must deposit all unearned and unbilled monies into the Client Account.

Withdrawal of money from a Client Account

You may withdraw money from a Client Account for the following reasons:

1. Money properly required for payment of a disbursement for which the Member has received written permission from the Client regarding the payment.
2. Money required to reimburse the Member for disbursements incurred on behalf of a Client for which the Member has issued an invoice to the Client. Under Model 2 this is the rule that allows funds to be deposited directly to the Member’s business account.
3. Money required for or toward payment of fees for services rendered by the Member for which the Member has issued an invoice to the Client. Under Model 2 this is the rule that allows funds to be deposited directly to the Member’s business account.
4. Money that is directly transferred, at the written direction of a Client, into the Client Account of another Member, the trust account of a Lawyer or the trust account of a Quebec Notary.
5. Money that was paid into a Client Account which, under this Regulation, the By-law, the Code of Professional Ethics or any other rule or policy of the Council in effect from time to time, should not have been paid into a Client Account.
6. Money refunded to a Client.

Manner of withdrawal

You may withdraw money from your Client Account only by cheque, and only for the permitted purposes. The cheque shall be signed by you as a Member, and shall not be made payable to cash or to bearer.

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